MBS are down -6/32 (FNMA 30-yr 3.5 at 102.26), around 5/32 lower than yesterday at this time.
European bond markets are leading global markets this morning. Increased concern that the European Central Bank and the Bank of England may be closer to tightening monetary policy than expected has pushed global bond yields higher. In addition, today’s German inflation data came in stronger than expected. In the U.S., first quarter GDP was revised higher from 1.2% to 1.4%, above the consensus for a flat reading of 1.2%. Weekly Jobless Claims came in close to expectations. The Dow is down 10 points. No more economic data will be released today.